Although ongoing fees may sometimes appear small, they can have a huge impact on your retirement savings over time. The U.S. Securities and Exchange Commission illustrates the long-term effect of different ongoing fees in their publication How Fees and Expenses Affect Your Investment Portfolio (see below).
Understanding the fees you pay is key to understanding your investments, and could save you a lot of money for retirement in the long run. Before entering into any 403(b) contract, ask questions so that you understand what, when and why you will be charged. The SEC provides a list of questions to get you started in How Fees and Expenses Affect Your Investment Portfolio (see below). Also, be aware that if you are interested in purchasing a variable annuity, state law requires that the company’s sales representative provide you with a Uniform Disclosure Notice detailing all fees and charges associated with the investment.
Legal Disclaimer
Regarding 403(b) plansTRS is not authorized to offer legal or financial advice to members. The contents of this page are provided by TRS for educational and informational purposes only. It is neither intended as tax or investment advice nor does it constitute a recommendation to buy or sell any security.
TRS does not explicitly or implicitly endorse or approve any individual type of retirement plan and/or investment product offered by other retirement plans. All investing is subject to risk, including the possible loss of all the money you invest. Before investing, consider your investment objectives, risks, charges and expenses.
Questions?
Regarding Individual 403(b) ContractsPlease contact your school district, TPA or 403(b) provider directly.